Epstein’s islands sell to finance buyer planning luxury resort

THE pair of Caribbean islands that belonged to Jeffrey Epstein, the former financier accused of sex trafficking, have sold to a buyer who plans to build a luxury resort that can break free of the land’s sordid past.

Stephen Deckoff, through his SD Investments, is buying Great St James and Little St James in the US Virgin Islands, according to a statement on Wednesday (May 3). The properties sold for a combined price of US$60 million, according to Bespoke Real Estate, which had the listing with the Modlin Group.

Epstein was accused of trafficking young women and underage girls on the islands, which locals called “Pedophile Island” and “Orgy Island”. The sale comes with a big discount from a March 2022 listing price of US$125 million.

The US Virgin Islands will receive half the proceeds from the sale of Little St James – where Epstein lived – as part of a settlement his estate reached with the government last year. The islands were priced at US$30 million each, according to a person familiar with the matter who asked not to be identified citing private details.

Epstein’s business dealings continue to come under scrutiny, including in a lawsuit filed by the government of the US Virgin Islands accusing JPMorgan Chase & Co of benefiting from sex trafficking through its ties to the late money manager.

Deckoff, the founder and principal of Black Diamond Capital Management, intends to develop a 25-room luxury resort to boost tourism and create jobs, according to a statement. He is in the process of hiring architects and engineers to work on the project, which he expects to open in 2025.

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Deckoff “has built a successful career crafting and executing plans to turn distressed situations into successful enterprises”, according to the statement on Wednesday.

Forbes first reported Deckoff’s purchase.

Epstein bought the 29-hectares island of Little St James, which had a main house and additional structures, in 1998 for US$7.95 million. He paid US$22.5 million in 2016 for Great St James. BLOOMBERG